Real Estate Glossary
Legal Terms
Acknowledgement - a formal declaration before an authorized person (notary)
that he executed the document.
Action in Rem - a court action to settle a property issue.
Adjudication - a process where the estate of a deceased person is divided and
awarded to the heirs.
Affidavit - a sworn statement made before an authorized officer.
Alienation - transferring of property ownership to another.
Antichresis - a provision giving the creditor right to receive the fruits of debtor's
property and apply them to the loan.
Assignment - the transfer of rights over a property or transaction thereof;
Assignor/Assignee - entities involved.
Attachment - seizure of property during a pending action to have it available after
judgment.
Attorney-in-fact - one who is authorized to perform certain acts under a power of attorney; the
power of attorney may be "general" or "special". General is usually for admin acts; special
for signing transaction documents.
Breach - the breaking of a law or contractual obligation. "Breach of contract"
Bona-fide - in good faith, without fraud.
Caveat Emptor - "Let the Buyer Beware"
Cession - assignment of debtor's property to the creditor for it to sell to satisfy the
debt.
Chattel Real - interest in real estate less than freehold, such as an estate for years.
Collusion - an illicit agreement between two or more persons resulting in fraud or
violation of rights and statutes.
Condemnation (US) or Expropriation (RP) - exercise of eminent domain to take
property for public use or safety.
Conflict of interest - where a person's participation in an act may advance his
personal interest to the detriment of others.
Constructive notice - a legal presumption that a person has knowledge of a fact
which is a matter of public record.
Curtesy - the common law of interest of a husband in the estate of a deceased
wife.
Dacion en Pago - delivery by debtor of a thing to satisfy as accepted equivalent
for the obligation.
Default - failure to fulfill an obligation or act.
Defeasance clause - a clause in mortgage which gives mortgagor the right to
redeem upon payment of his obligations.
Deficiency judgment - a court order requiring the borrower to pay the difference
between the obligation and proceeds of foreclosure sale.
Ex parte - at the request or for the benefit of only one party, may be without notice
to the other.
Fraud - intentional acts of deception, collusion, etc. resulting in loss and injury to
others.
Forefeiture - loss of money, property, or anything of value for failure to perform an
obligation.
Gift deed - a deed in which the consideration is love and affection and not a
material consideration.
Grant - technical term for conveyance; Grantor and Grantee - entities involved.
Injunction - a writ or order by court to restrain one or more parties from doing an
act.
Instrument - a written legal document.
Inheritance or Succession:
Administrator - person appointed by court to administer the estate of a
deceased person.
Bequeth - to leave by will; items left are called "bequests".
Codicil - a change or amendment to a will.
Devisees - person who receives gifts of real property by will; vs. Legatees person who receives gifts of personal property by will.
Intestate - a condition where a person who dies did not leave a will.
Executor - person designated in a will to carry out its provisions regarding
disposition of the estate.
Escheat - reverting of land to the State where there are no heirs, devisees or
legatees.
Hypothecate - to convey a property as security for an obligation without having to
surrender ownership or possession.
Judgment lien - lien created by recording a judgment on the property's title.
Jurat - clause attesting that affidavit was made before an authorized officer.
Laches - inexcusable delay in asserting a right, an equitable statute of limitations.
Lesion - damage caused by the fact that the price is unjust or inadequate.
Lis Pendens - annotation on a titloe serving notice that the property is under a
pending court litigation.
Negotiable - capable of being negotiated, assigned or transferred in the ordinary
course of business.
Offset statement - statement by an owner or lien-holder stating the status of liens
against the said property.
Pacto de Retro - a contract of sale giving the seller the right to repurchase within
a given period.
Pactum non aliendo - a stipulation forbidding the owner to sell a mortgage
property; prohibited by law.
Pactum commissorium - a stipulation giving creditor automatic right to own a
property collateral in default.
Pactum reservati domini - (contractual reservation of title) ownership remains
with seller until sale is fully paid.
Partition - court action where co-owners or heirs can divide ownership.
Patent - a conveyance of title to government land.
Pendente lite - pending suit.
Prescription - securing title to property by adverse possession; having occupied it
over a period barring recovery.
Prima facie - on its face.
Principal - employer of an agent.
Quantum meruit - recovery for value of services.."the amount he deserves"..
Reconveyance - transfer of title back to the immediate preceding owner.
Redemption - buying back one's property after a judicial sale.
Reformation - an action to correct a mistake in a deed or other document.
Release clause - stipulation that a specific portion of mortgaged property may be
released upon payment of the pro-rate amount for that property; (same as
automatic redemption clause).
Rescission of Contract - abrogation, revocation, repeal by mutual consent or for
cause by either party.
Seizin - possession of land under a claim of freehold; "seisin" (an old feudal term).
Servitude - a right in another property in the nature of an easement.
Specific performance - a legal action to compel a party to a contract to perform
the obligations required therein.
Statue of frauds - certain contracts must be in writing in order to prevent fraud.
Subpoena - to cause a witness to appear;
Subpoena Duces Tecum - directs witness to bring documents.
Tacita Reconducta - implied new lease if after 15 days of expiry lessor does not
notify termination.
Tenements - all rights in land or real estate which passes on with its conveyance.
Time is of the essence - an essential requirement of binding contracts; means
punctual performance.
Ultra vires - "beyond their powers".
Usufruct - right to temporary use including the fruits.
Valid - enforceable, having force, binding, legally sufficient.
Void - unenforceable, to have no forced or effect;
Voidable - to be capable of being adjudged void after due process; not void unless
action was taken to make it so.
Verification - sworn statement that a duly qualified officer has verified correctness
of an instrument.
Vested interest - an interest in a property or asset bestowed or earned.
